R&G Financial Corp. (PINKSHEETS: RGFC), a financial holding company based in San Juan, Puerto Rico that provides banking, mortgage banking, and insurance services, has announced the preliminary settlement of the securities class action (and a related derivative suit) pending against the company in the S.D. of New York. The case, originally filed in April 2005, stems from allegations that R&G Financial failed to disclose and misrepresented adverse facts in its financial statements, lacked adequate internal controls, and engaged in financial accounting practices that caused its net income and financial results to be materially overstated. The settlement is for $39 million, with R&G Financial contributing approximately $29 million, and the company’s insurers and certain individual defendants contributing approximately $11 million.
R&G Financial Settles
Filed under Settlement